Correlation Between JPMorgan Nasdaq and Natixis ETF
Can any of the company-specific risk be diversified away by investing in both JPMorgan Nasdaq and Natixis ETF at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining JPMorgan Nasdaq and Natixis ETF into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between JPMorgan Nasdaq Equity and Natixis ETF Trust, you can compare the effects of market volatilities on JPMorgan Nasdaq and Natixis ETF and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in JPMorgan Nasdaq with a short position of Natixis ETF. Check out your portfolio center. Please also check ongoing floating volatility patterns of JPMorgan Nasdaq and Natixis ETF.
Diversification Opportunities for JPMorgan Nasdaq and Natixis ETF
0.97 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between JPMorgan and Natixis is 0.97. Overlapping area represents the amount of risk that can be diversified away by holding JPMorgan Nasdaq Equity and Natixis ETF Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Natixis ETF Trust and JPMorgan Nasdaq is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on JPMorgan Nasdaq Equity are associated (or correlated) with Natixis ETF. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Natixis ETF Trust has no effect on the direction of JPMorgan Nasdaq i.e., JPMorgan Nasdaq and Natixis ETF go up and down completely randomly.
Pair Corralation between JPMorgan Nasdaq and Natixis ETF
Given the investment horizon of 90 days JPMorgan Nasdaq Equity is expected to generate 1.18 times more return on investment than Natixis ETF. However, JPMorgan Nasdaq is 1.18 times more volatile than Natixis ETF Trust. It trades about 0.12 of its potential returns per unit of risk. Natixis ETF Trust is currently generating about 0.1 per unit of risk. If you would invest 3,557 in JPMorgan Nasdaq Equity on August 26, 2024 and sell it today you would earn a total of 2,100 from holding JPMorgan Nasdaq Equity or generate 59.04% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 48.29% |
| Values | Daily Returns |
JPMorgan Nasdaq Equity vs. Natixis ETF Trust
Performance |
| Timeline |
| JPMorgan Nasdaq Equity |
| Natixis ETF Trust |
JPMorgan Nasdaq and Natixis ETF Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JPMorgan Nasdaq and Natixis ETF
The main advantage of trading using opposite JPMorgan Nasdaq and Natixis ETF positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JPMorgan Nasdaq position performs unexpectedly, Natixis ETF can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Natixis ETF will offset losses from the drop in Natixis ETF's long position.| JPMorgan Nasdaq vs. JPMorgan Equity Premium | JPMorgan Nasdaq vs. Global X SP | JPMorgan Nasdaq vs. Amplify CWP Enhanced | JPMorgan Nasdaq vs. Global X Russell |
| Natixis ETF vs. Global X Dow | Natixis ETF vs. AdvisorShares STAR Global | Natixis ETF vs. Global X Funds | Natixis ETF vs. FT Vest Dow |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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